EAGLE MOUNTAIN-SAGINAW

INDEPENDENT SCHOOL DISTRICT

Annual Financial Management Report

(A report on the School FIRST Accountability Rating System)

For the 2021-2022 School Year

 TABLE OF CONTENTS

Overview of School FIRST ......................................................................................................... 1

EMS Independent School District's Rating .............................................................................. 2

2021-2022 Ratings based on 2020-2021 Data ........................................................................... 3

2020-2021 Ratings based on 2019-2020 Data ........................................................................... 6

Disclosures (Additional Reporting Requirements) ........................................................ 9

Superintendent’s Current Employment Contract ......................................................................... 10
Reimbursements Received by the Superintendent and Board Members for Fiscal Year 2021 .... 22
Other Compensation Received by the Superintendent ............................................................... 22
Disclosure of Gifts from Vendors to Board and Employees ......................................................... 23
Board Member Business Transactions with the District ............................................................... 23
Overview of School FIRST (Financial Integrity Rating System of Texas)

This is the 20th year of Schools FIRST, a financial accountability system for Texas
school districts developed by the Texas Education Agency (TEA) in response to
Senate Bill 875 of the 76th Texas Legislature in 1999. Every school district in
Texas is required to prepare an annual financial management report to disclose
the district’s financial management performance rating provided by TEA based
on its comparison with financial measurements, ratios, and other indicators
established by the Commissioner of Education for the State’s Financial
Accountability System. The rating is based on financial data for the 2020-2021
school year.

The primary goal of Schools FIRST is to achieve quality performance in the

management of school districts' financial resources, a goal made more
significant due to the complexity of accounting associated with Texas’ school
finance system. Its purpose is also to ensure that school districts will be held
accountable for the quality of their financial management practices. The system
is designed to encourage Texas public schools to manage their financial
resources better in order to provide the maximum allocation possible for direct
instructional purposes. The system will also disclose the quality of local
management and decision-making processes that impact the allocation of
financial resources in Texas public schools.

The Schools FIRST accountability rating system assigns one of the four financial
accountability ratings to Texas school districts, with the highest being “A” for “Superior
Achievement,” followed by “B” for “Above-Standard Achievement,” “C” for “Standard
Achievement” and “F” for “Substandard Achievement.” Districts with serious data
quality problems may receive the additional rating of “Suspended-Date Quality.”
Those districts that receive a substandard or data quality rating must file a corrective
action plan with TEA and could face sanctions by the Commissioner of Education.

In order to achieve a Superior Achievement rating the district must have a score of 90-
100. Above-Standard Achievement would require a score of 80-89. Standard
Achievement would require a score of 70 and Substandard is less than 70 or “No” to
any one indicator 1, 2, 3, or 4. Indicators 4, 6, 16, 17, and 20 can impose a ceiling
maximum on the district’s total number of points or overall rating.

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EMS Independent School District's Rating

Eagle Mountain-Saginaw ISD’s 2021-2022 School FIRST rating: A = Superior

Achievement.

Of the 20 indicators for the financial period ended August 31, 2021, the district has all
“Yes” answers on questions 1 through 4 and received the score of 96 out of 100 points
on questions 6 through 20. The report generated by TEA for the Eagle Mountain-
Saginaw ISD based on 2020-2021 district data follows along with the overall result for
all districts in the state. A copy of district’s report for 2020-2021 is included for
comparative purposes.

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 RATING YEAR 2021-2022 DISTRICT NUMBER district # Select An Option Help Home

Financial Integrity Rating System of Texas

2021-2022 RATINGS BASED ON SCHOOL YEAR 2020-2021 DATA - DISTRICT

STATUS DETAIL
Name: EAGLE MT-SAGINAW ISD(220918) Publication Level 1: 8/2/2022 2:05:39 PM

Status: Passed Publication Level 2: 8/4/2022 12:15:48 PM

Rating: A = Superior Achievement Last Updated: 8/4/2022 12:15:48 PM

District Score: 96 Passing Score: 70

# Indicator Description Updated Score

1 Was the complete annual financial report (AFR) and data submitted to the TEA within 30 days of 7/12/2022 Yes
the November 27 or January 28 deadline depending on the school district’s fiscal year end date of 8:48:39
June 30 or August 31, respectively? AM

2 Was there an unmodified opinion in the AFR on the financial statements as a whole? (The American 5/16/2022 Yes
Institute of Certified Public Accountants (AICPA) defines unmodified opinion. The external 1:02:56
independent auditor determines if there was an unmodified opinion.) PM

3 Was the school district in compliance with the payment terms of all debt agreements at fiscal year 5/16/2022 Yes
end? (If the school district was in default in a prior fiscal year, an exemption applies in following 1:02:56
years if the school district is current on its forbearance or payment plan with the lender and the PM
payments are made on schedule for the fiscal year being rated. Also exempted are technical
defaults that are not related to monetary defaults. A technical default is a failure to uphold the
terms of a debt covenant, contract, or master promissory note even though payments to the
lender, trust, or sinking fund are current. A debt agreement is a legal agreement between a debtor
(= person, company, etc. that owes money) and their creditors, which includes a plan for paying
back the debt.)

4 Did the school district make timely payments to the Teachers Retirement System (TRS), Texas 5/16/2022 Yes
Workforce Commission (TWC), Internal Revenue Service (IRS), and other government agencies? 1:02:57
(If the school district received a warrant hold and the warrant hold was not cleared within 30 days PM Ceiling
from the date the warrant hold was issued, the school district is considered to not have made Passed
timely payments and will fail critical indicator 4. If the school district was issued a warrant hold,
the maximum points and highest rating that the school district may receive is 95 points, A =
Superior Achievement, even if the issue surrounding the initial warrant hold was resolved and
cleared within 30 days.)

5 This indicator is not being scored.

1
Multiplier
Sum

6 Was the average change in (assigned and unassigned) fund balances over 3 years less than a 25 5/17/2022 Ceiling
percent decrease or did the current year's assigned and unassigned fund balances exceed 75 days 9:58:57 Passed
of operational expenditures? (If the school district fails indicator 6, the maximum points and AM
highest rating that the school district may receive is 89 points, B = Above Standard Achievement.)

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7 Was the number of days of cash on hand and current investments in the general fund for the 5/16/2022 10
school district sufficient to cover operating expenditures (excluding facilities acquisition and 1:02:58
construction)? See ranges below in the Determination of Points section. PM

8 Was the measure of current assets to current liabilities ratio for the school district sufficient to 5/16/2022 10
cover short-term debt? See ranges below in the Determination of Points section. 1:02:59
PM

9 Did the school district's general fund revenues equal or exceed expenditures (excluding facilities 5/16/2022 10
acquisition and construction)? If not, was the school district's number of days of cash on hand 1:02:59
greater than or equal to 60 days? See ranges below in the Determination of Points section. PM

10 This indicator is not being scored. 10

11 Was the ratio of long-term liabilities to total assets for the school district sufficient to support long- 5/16/2022 10
term solvency? If the school district's increase of students in membership over 5 years was 7 1:03:01
percent or more, then the school district automatically passes this indicator. See ranges below in PM
the Determination of Points section.

12 Was the debt per $100 of assessed property value ratio sufficient to support future debt 5/16/2022 6
repayments? See ranges below in the Determination of Points section. 1:03:01
PM

13 Was the school district's administrative cost ratio equal to or less than the threshold ratio? See 6/9/2022 10
ranges below in the Determination of Points section. 11:23:43
AM

14 Did the school district not have a 15 percent decline in the students to staff ratio over 3 years 5/16/2022 10
(total enrollment to total staff)? If the student enrollment did not decrease, the school district will 1:03:02
automatically pass this indicator. PM

15 This indicator is not being scored. 5

16 Did the comparison of Public Education Information Management System (PEIMS) data to like 5/16/2022 Ceiling
information in the school district's AFR result in a total variance of less than 3 percent of all 1:03:02 Passed
expenditures by function? (If the school district fails indicator 16, the maximum points and highest PM
rating that the school district may receive is 89 points, B = Above Standard Achievement.)

17 Did the external independent auditor report that the AFR was free of any instance(s) of material 5/16/2022 Ceiling
weaknesses in internal controls over financial reporting and compliance for local, state, or federal 1:03:02 Passed
funds? (The AICPA defines material weakness.) (If the school district fails indicator 17, the PM
maximum points and highest rating that the school district may receive is 79 points, C = Meets
Standard Achievement.)

18 Did the external independent auditor indicate the AFR was free of any instance(s) of material 5/16/2022 10
noncompliance for grants, contracts, and laws related to local, state, or federal funds? (The AICPA 1:03:03
defines material noncompliance.) PM

19 Did the school district post the required financial information on its website in accordance with 5/16/2022 5
Government Code, Local Government Code, Texas Education Code, Texas Administrative Code and 1:03:03
other statutes, laws and rules that were in effect at the school district's fiscal year end? PM

20 Did the school board members discuss the district's property values at a board meeting within 120 5/16/2022 Ceiling
days before the district adopted its budget? (If the school district fails indicator 20 the maximum 1:03:03 Passed
points and highest rating that the school district may receive is 89 points, B = Above Standard PM
Achievement.)

96
Weighted
Sum

1
Page 4
 Multiplier
Sum

(100
Ceiling)

96 Score

DETERMINATION OF RATING
A. Did the school district fail any of the critical indicators 1, 2, 3, or 4? If so, the school district's rating is F for Substandard
Achievement regardless of points earned.

B. Determine the rating by the applicable number of points.

A = Superior Achievement 90-100

B = Above Standard Achievement 80-89

C = Meets Standard Achievement 70-79

F = Substandard Achievement <70

No Rating = A school district receiving territory that annexes with a school district ordered by the commissioner under
TEC 13.054, or consolidation under Subchapter H, Chapter 41. No rating will be issued for the school district receiving
territory until the third year after the annexation/consolidation.

The school district receives an F if it scores below the minimum passing score, if it failed any critical indicator 1, 2, 3, or 4, if the AFR
or the data were not both complete, or if either the AFR or the data were not submitted on time for FIRST analysis.

CEILING INDICATORS
Did the school district meet the criteria for any of the following ceiling indicators 4, 6, 16, 17, or 20? If so, the school district's
applicable maximum points and rating are disclosed below. Please note, an F = Substandard Achievement Rating supersedes any
rating earned as the result of the school district meeting the criteria of a ceiling indicator.

Maximum
Determination of rating based on meeting ceiling criteria. Maximum Rating
Points

Indicator 4 (Timely Payments) - School district was issued a warrant hold. 95 A = Superior Achievement

Indicator 6 (Average Change in Fund Balance) - Response to indicator is B = Above Standard

89
No. Achievement

B = Above Standard
Indicator 16 (PEIMS to AFR) - Response to indicator is No. 89
Achievement

C = Meets Standard
Indicator 17 (Material Weaknesses) - Response to indicator is No. 79
Achievement

Indicator 20 (Property Values and Tax Discussion) - Response to indicator B = Above Standard
89
is No. Achievement

Home Page: Financial Accountability | Send comments or suggestions to FinancialAccountability@tea.texas.gov

THE TEXAS EDUCATION AGENCY
1701 NORTH CONGRESS AVENUE · AUSTIN, TEXAS, 78701 · (512) 463-9734

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 RATING YEAR 2020-2021 DISTRICT NUMBER district # Select An Option Help Home

Financial Integrity Rating System of Texas

2020-2021 RATINGS BASED ON SCHOOL YEAR 2019-2020 DATA - DISTRICT

STATUS DETAIL
Name: EAGLE MT-SAGINAW ISD(220918) Publication Level 1: 8/4/2021 2:00:38 PM

Status: Passed Publication Level 2: 8/6/2021 11:10:55 AM

Rating: A = Superior Achievement Last Updated: 8/6/2021 11:10:55 AM

District Score: 96 Passing Score: 70

# Indicator Description Updated Score

1 Was the complete annual financial report (AFR) and data submitted to the TEA within 30 days of 6/8/2021 Yes
the November 27 or January 28 deadline depending on the school district’s fiscal year end date of 4:17:35
June 30 or August 31, respectively? PM

2 Was there an unmodified opinion in the AFR on the financial statements as a whole? (The American 6/8/2021 Yes
Institute of Certified Public Accountants (AICPA) defines unmodified opinion. The external 4:17:35
independent auditor determines if there was an unmodified opinion.) PM

3 Was the school district in compliance with the payment terms of all debt agreements at fiscal year 6/8/2021 Yes
end? (If the school district was in default in a prior fiscal year, an exemption applies in following 4:17:35
years if the school district is current on its forbearance or payment plan with the lender and the PM
payments are made on schedule for the fiscal year being rated. Also exempted are technical
defaults that are not related to monetary defaults. A technical default is a failure to uphold the
terms of a debt covenant, contract, or master promissory note even though payments to the
lender, trust, or sinking fund are current. A debt agreement is a legal agreement between a debtor
(= person, company, etc. that owes money) and their creditors, which includes a plan for paying
back the debt.)

4 Did the school district make timely payments to the Teachers Retirement System (TRS), Texas 7/1/2021 Yes
Workforce Commission (TWC), Internal Revenue Service (IRS), and other government agencies? 9:14:58
(If the school district received a warrant hold and the warrant hold was not cleared within 30 days AM Ceiling
from the date the warrant hold was issued, the school district is considered to not have made Passed
timely payments and will fail critical indicator 4. If the school district was issued a warrant hold,
the maximum points and highest rating that the school district may receive is 95 points, A =
Superior Achievement, even if the issue surrounding the initial warrant hold was resolved and
cleared within 30 days.)

5 This indicator is not being scored.

1
Multiplier
Sum

6 Was the average change in (assigned and unassigned) fund balances over 3 years less than a 25 6/28/2021 Ceiling
percent decrease or did the current year's assigned and unassigned fund balances exceed 75 days 11:18:25 Passed
of operational expenditures? (If the school district fails indicator 6, the maximum points and AM
highest rating that the school district may receive is 89 points, B = Above Standard Achievement.)

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7 Was the number of days of cash on hand and current investments in the general fund for the 6/8/2021 10
school district sufficient to cover operating expenditures (excluding facilities acquisition and 4:17:36
construction)? See ranges below in the Determination of Points section. PM

8 Was the measure of current assets to current liabilities ratio for the school district sufficient to 6/8/2021 10
cover short-term debt? See ranges below in the Determination of Points section. 4:17:36
PM

9 Did the school district's general fund revenues equal or exceed expenditures (excluding facilities 6/8/2021 10
acquisition and construction)? If not, was the school district's number of days of cash on hand 4:17:36
greater than or equal to 60 days? See ranges below in the Determination of Points section. PM

10 Did the school district average less than a 10 percent variance (90% to 110%) when comparing 7/2/2021 10
budgeted revenues to actual revenues for the last 3 fiscal years? 2:06:18
PM

11 Was the ratio of long-term liabilities to total assets for the school district sufficient to support long- 6/8/2021 10
term solvency? If the school district's increase of students in membership over 5 years was 7 4:17:37
percent or more, then the school district automatically passes this indicator. See ranges below in PM
the Determination of Points section.

12 Was the debt per $100 of assessed property value ratio sufficient to support future debt 6/8/2021 6
repayments? See ranges below in the Determination of Points section. 4:17:38
PM

13 Was the school district's administrative cost ratio equal to or less than the threshold ratio? See 6/8/2021 10
ranges below in the Determination of Points section. 4:17:38
PM

14 Did the school district not have a 15 percent decline in the students to staff ratio over 3 years 6/8/2021 10
(total enrollment to total staff)? If the student enrollment did not decrease, the school district will 4:17:38
automatically pass this indicator. PM

15 Was the school district's ADA within the allotted range of the district's biennial pupil projection(s) 6/8/2021 5
submitted to TEA? If the district did not submit pupil projections to TEA, did it certify TEA's 4:17:38
projections? See ranges below in the Determination of Points section. PM

16 Did the comparison of Public Education Information Management System (PEIMS) data to like 6/8/2021 Ceiling
information in the school district's AFR result in a total variance of less than 3 percent of all 4:17:38 Passed
expenditures by function? (If the school district fails indicator 16, the maximum points and highest PM
rating that the school district may receive is 89 points, B = Above Standard Achievement.)

17 Did the external independent auditor report that the AFR was free of any instance(s) of material 6/8/2021 Ceiling
weaknesses in internal controls over financial reporting and compliance for local, state, or federal 4:17:38 Passed
funds? (The AICPA defines material weakness.) (If the school district fails indicator 17, the PM
maximum points and highest rating that the school district may receive is 79 points, C = Meets
Standard Achievement.)

18 Did the external independent auditor indicate the AFR was free of any instance(s) of material 6/8/2021 10
noncompliance for grants, contracts, and laws related to local, state, or federal funds? (The AICPA 4:17:39
defines material noncompliance.) PM

19 Did the school district post the required financial information on its website in accordance with 6/8/2021 5
Government Code, Local Government Code, Texas Education Code, Texas Administrative Code and 4:17:39
other statutes, laws and rules that were in effect at the school district's fiscal year end? PM

20 Did the school board members discuss the district's property values at a board meeting within 120 6/8/2021 Ceiling
days before the district adopted its budget? (If the school district fails indicator 20 the maximum 4:17:39 Passed
points and highest rating that the school district may receive is 89 points, B = Above Standard PM
Achievement.)

96
Weighted
Page 7
 Sum

1
Multiplier
Sum

(100
Ceiling)

96 Score

DETERMINATION OF RATING
A. Did the school district fail any of the critical indicators 1, 2, 3, or 4? If so, the school district's rating is F for Substandard
Achievement regardless of points earned.

B. Determine the rating by the applicable number of points.

A = Superior Achievement 90-100

B = Above Standard Achievement 80-89

C = Meets Standard Achievement 70-79

F = Substandard Achievement <70

No Rating = A school district receiving territory that annexes with a school district ordered by the commissioner under
TEC 13.054, or consolidation under Subchapter H, Chapter 41. No rating will be issued for the school district receiving
territory until the third year after the annexation/consolidation.

The school district receives an F if it scores below the minimum passing score, if it failed any critical indicator 1, 2, 3, or 4, if the AFR
or the data were not both complete, or if either the AFR or the data were not submitted on time for FIRST analysis.

CEILING INDICATORS
Did the school district meet the criteria for any of the following ceiling indicators 4, 6, 16, 17, or 20? If so, the school district's
applicable maximum points and rating are disclosed below. Please note, an F = Substandard Achievement Rating supersedes any
rating earned as the result of the school district meeting the criteria of a ceiling indicator.

Maximum
Determination of rating based on meeting ceiling criteria. Maximum Rating
Points

Indicator 4 (Timely Payments) - School district was issued a warrant hold. 95 A = Superior Achievement

Indicator 6 (Average Change in Fund Balance) - Response to indicator is B = Above Standard

89
No. Achievement

B = Above Standard
Indicator 16 (PEIMS to AFR) - Response to indicator is No. 89
Achievement

C = Meets Standard
Indicator 17 (Material Weaknesses) - Response to indicator is No. 79
Achievement

Indicator 20 (Property Values and Tax Discussion) - Response to indicator B = Above Standard
89
is No. Achievement

Page 8
Disclosures

1. Superintendent’s Current Employment Contract

2. Reimbursements Received by the Superintendent and Board Members for Fiscal Year 2021

3. Outside Compensation and/or Fees Received by the Superintendent for Professional

Consulting and/or Other Personal Services in Fiscal Year 2021

4. Gifts Received by the Executive Officer(s) and Board Members (and First-Degree Relatives,
if any) in Fiscal Year 2021

5. Business Transactions Between School District and Board Member for Fiscal Year 2021

Page 9
Disclosures

1. Superintendent’s Current Employment Contract

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Disclosures (continued)

2. Reimbursements Received by the Superintendent and Board Members for Fiscal Year 2021

For the Twelve-Month Period Ended August 31, 2021

*As stipulated in the contract, reimbursements are for district related travel costs outside of Tarrant County, Denton County, Wise County, and Dallas County.

3. Outside Compensation and/or Fees Received by the Superintendent for Professional Consulting and/or Other Personal
Services in Fiscal Year 2021

For the Twelve-Month Period Ended August 31, 2021

Name(s) of Entity(ies)
None Reported $0.00

Total $0.00

Note: Monies earned at Region XI are remitted to the Education Foundation.

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Disclosures (continued)

4. Gifts Received by the Executive Officer(s) and Board Members (and First-Degree Relatives, if any) in Fiscal Year 2021

For the Twelve-Month Period Ended August 31, 2021

Jim F. Chadwell Marilyn Tolbert Paige Ring Tim Daughtrey William Boaz Steven G. Newcom Elizabeth Lopez Hatley Donna Webb
Superintendent Trustee - Place 1 Trustee - Place 2 Trustee - Place 3 Trustee - Place 4 Trustee - Place 5 Trustee - Place 6 Trustee - Place 7
None Reported $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Total $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

5. Business Transactions Between School District and Board Member for Fiscal Year 2021

For the Twelve-Month Period Ended August 31, 2021

Name Business Total

Tim Daughtrey, Trustee - Place 3 Champion Track & Turf Repair $26,600.00

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